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Proposed amendments to the Mines and Minerals Act could grant the Centre greater control over rare mineral lands, potentially impacting Kerala's black sand sector and increasing private involvement in mining.
The Chief Minister countered opposition accusations of privatisation by revealing their prior deal with Midwest Limited for mineral processing, stating the agreement was now off and private players would not be involved.
A monazite processing project is embroiled in controversy due to allegations that tender conditions were altered to favour a private Hyderabad company, potentially allowing them continued association with KMML.
Pinarayi said the move to permit private mineral sand mining originated under the Congress-led Central government
India rare earth corridors are being established in Tamil Nadu, Kerala, Odisha, and Andhra Pradesh to reduce dependence on China for critical minerals.
The construction company has been extracting earth by demolishing hills for the widening works of the National Highway for the last few months.
The government had given the nod for mineral sand mining to KRMEL following the recommendation of KSIDC.
The contract with KMRL, the subsidiary of the Kochi-based CMRL, for sand mining was cancelled only in December 2023, close to five years after the Centre's order.
The e-Way bills disclosed that KMML had purchased synthetic rutile from CMRL since August 2018.
The ED stated that sand worth Rs 60 crore was excavated from the Menamkulam project area in Thiruvananthapuram, and there was a corruption of Rs 6.34 crore as well.
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